TORONTO, ONTARIO, April 28, 2016 – Mangazeya Mining Ltd. (“Mangazeya” or the “Company”) (NEX: MGZ.H) announced the filing of its annual audited financial statements (“Financial Statements”), management’s discussion and analysis (“MD&A”) for the Company’s financial year ended December 31, 2015 as required by National Instrument 51-102 Continuous Disclosure Obligations. All figures are quoted in Canadian dollars unless otherwise indicated.

Highlights for 2015 include(*1):
 Mangazeya reached a record gold production (all production came from Savkino mine) in 2015 of 33.9 Koz (+204% year-on-year) on the back of increased volumes of ore staked (+108%) and higher grades in ore stacked (+26%); in Q4 2015 gold production increased by 235% to 12.8 Koz compared to 3.8Koz in Q4 2014;

 Revenues were up to $50.5 million for 2015, an 230% increase year-on-year (YoY); in Q4 2015 revenue increased by 184% to $22.7 million from $7.99 million in Q4 2014;

 Adjusted EBITDA for 2015 reached $17.4 million compared to negative EBITDA of $1.3 million in the corresponding period of 2014. For Q4 2015 adjusted EBITDA increased to $6.6 million compared to $1.5 million in Q4 2014. Adjusted EBITDA margin of 34.5% for 2015 and 29.3% for Q4 2015;

 For 2015 total cash costs (TCC) per ounce of gold sold made up $648 (US$ 508) compared to $767 (US$ 695), а 15% decrease YoY on the back of increased production, lower strip ratio (3.1 m3/t compared to 5.4 m3/t YoY) and strict cost control; TCC for Q4 2015 was $659 compared to $678 for Q4 2014;

 Cash flow from operating activities before changes in working capital amounted to $15.4 million for 2015 and $6.9 million for Q4 2015;

 Capital expenditures for 2015 amounted to $5.9 million with $1.2 million spent on exploration activities on Nasedkino, Savkinskoye and Zolinsk-Arkiinsk properties and $4,7 million on mining equipment for the Savkinskoe mine.

Roman Kashuba, CEO commented, “We reached record production at Savkinskoe in 2015, providing us with strong cash flow. During 2015 we also created basis for continued strong production at Savkinskoe and for the beginning of construction on Nasedkino. We have positive outlook for 2016. The restructuring of the Company’s loans that started in 2015 and was finalized at the beginning of 2016 will ensure strong financial position and allows us to invest in further growth in 2016 and subsequent years.”
Financial Results for 2015
The Company reported operating income of $6.1 million in Q4 2015 (excluding one-time write-off of obsolete inventory) compared to $1.02 million in Q4 2014. The increase was mainly the result of significant improvement in production volume and increase in gold sales by 152% compared to Q4 2014. For 2015, the operating income amounted to $16.5 million as compared to operating loss of $3.1 million in 2014 (excluding one-time write-off of obsolete inventory in 2015 and impairment in 2014).

Administrative costs for Q4 2015 increased by 316% to $2.5 million from $0.6 million in Q4 2014. In total for 2015 administrative costs slightly increased by 16% compared to 2014.
During Q4 2015, the Company incurred finance expenses of $3.5 million compared to $5.5 million in Q4 2014. For 2015 finance expenses increased by 4% to $22.2 million from $21.4 million in 2014.

Cash received from operating activity (before changes in working capital) in Q4 2015 was $6.9 million as compared to outflow of $1.1 million in Q4 2014. The increase was due to significant growth in gold sales. Cash used in investing activities in Q4 2015 was $17.9 million as compared to inflow of $0.06 million in Q4 2014. The decrease was due to short-term loans issued to a related party, acquisition of pit equipment and increase in drilling expenditures. Cash received from financing activities in Q4 2015 was $0.2 million compared to $0.1 million in Q4 2014.

For 2015 cash received from operating activity (before changes in working capital) was $15.4 million in comparison with cash used in 2014 of $5.4 million. Cash used in investing activities in 2015 was $13.6 million as compared to $4.7 million in 2014. The impact of Geozvetmet sale of $10.1 million was overlapped by the loans to related party $18.5 million. Cash used in financing activities in 2015 was $1.8 million compared to cash provided by financing activities of $12.7 million in 2014. The decrease was due to repayments of loans and accumulated interest to related party.

The Financial Statement and MD&A are available on Mangazeya’s website at mangazeyamining.ru and have been filed on SEDAR at http://www.sedar.com.

(*1) 1 Non-IFRS financial measures (average gold price, total cash cost per ounce of gold, adjusted EBITDA). See definition and reconciliation the MD&A for 2015. Non-IFRS performance measures provide additional information and should not be considered in isolation or a substitute for measure of performance prepared in accordance with IFRS.

About Mangazeya Mining Ltd.

Mangazeya Mining Ltd. is a NEX-listed mining and exploration company, focused on the development of mineral resources in the Russian Federation.

Caution Concerning Forward-Looking Information
This news release contains forward looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information within the meaning of applicable Canadian securities laws (collectively, "forward-looking statements") relating, but not limited to, the Company's expectations, intentions and beliefs (including, without limitation, statements regarding, the Bridge Loan (including the timing of advances thereunder and the terms thereof), the Company's financial position, financial alternatives and the Company's ability to continue operations and the Loan Facility (including the occurrence of an event of default thereunder and its potential effect on the Company)). Words such as "may", "will", "should", "anticipate", "plan", "expect", "believe", "estimate" and similar terminology are used to identify forward-looking statements. Such statements are based on assumptions, estimates, opinions and analysis made by the management of the Company in light of their experience, current conditions and their expectations of future developments as well as other factors which they believe to be reasonable and relevant. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those expressed or implied in the forward-looking statements. Risks and uncertainties that may cause actual results to vary include but are not limited to: the Company's ability to obtain additional financing on acceptable terms or at all; the Company's ability to demonstrate compliance with NEX listing requirements; changes in equity and debt markets; inflation; uncertainties relating to the availability and costs of financing needed to complete exploration, development and production activities; failure to establish estimated mineral resources or mineral reserves (the Company's mineral resource and mineral reserve figures are estimates and no assurances can be given that the indicated levels of gold will be produced); exploration costs varying significantly from estimates; delays in the exploration and development of, and/or commercial production from, the properties in which the Company has an interest; unexpected geological or hydrological conditions; the speculative nature of mineral exploration and development, including the uncertainty of reserve and resource estimates; operational and technical difficulties, including the failure of major mining and/or milling equipment; the ability of the Company to service its existing debt facilities; fluctuations in gold and other commodity prices; the existence of undetected or unregistered interests or claims, whether in contract or in tort, over the property of the Company; success of future exploration and development initiatives; competition; operating performance of facilities; environmental and safety risks, including increased regulatory burdens, seismic activity, weather and other natural phenomena; inability to, or delays in, obtaining necessary permits and approvals from government authorities; risks relating to labour; and other exploration, development and operating risks; changes to and compliance with applicable laws and regulations, including environmental laws; political, economic and other risks arising from the Company's activities in Russia; fluctuations in foreign exchange rates; and those risks set out in the Company's public documents filed on SEDAR. Although the Company believes that the assumptions and factors used in preparing the forward-looking information are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all.
Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.